Oil & Gas - IBEF

Oil & Gas

MARCH

2013

For updated information, please visit www.ibef.org

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Oil & Gas

MARCH

2013

Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: ONGC, Reliance Industries  Opportunities  Useful information


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Advantage India Skilled workforce

Growing demand •

•

India is the world’s fifth-largest energy consumer; oil accounts for 30 per cent of total energy consumption Buoyant economic growth is the main factor driving the country’s energy requirements

Advantage India Supportive FDI guidelines

2011

•

100 per cent Foreign Direct Investment (FDI) is allowed in upstream and private sector refining projects

•

The FDI limit for public sector refining projects has been raised to 49 per cent

Oil demand: 3.3 mbpd; Gas demand: 70.3 bcm For updated information, please visit www.ibef.org

•

About 141,929 people were employed in the petroleum industry by the end of FY11

•

The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asia’s first and only energy university

2016F Oil demand: 4.1 mbpd; Gas demand: 112.7 bcm

Policy Support •

Government has enacted various policies such as the New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) policy to encourage investments across the industry’s value chain

Source: Business Monitor International (BMI), Aranca Research Notes: mbpd - million barrels per day, bcm - billion cubic meters ADVANTAGE INDIA

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In India, oil and gas is dominated by state-owned entities →

India is the fifth-largest energy consumer in the world

→

The country has 5.7 billion barrels of proven oil reserves with an average oil production of 1.0 mbpd (2011)

→

India has 1,100 bcm of gas reserves; the country produces 46.1 bcm of gas annually (2011)

Upstream segment Exploration and production

Indian oil and gas sector

Midstream segment Storage and transportation

Downstream segment - Refining, processing and marketing

• The upstream segment is dominated by the state-owned ONGC • It is the largest upstream company in the exploration and production

(E&P) segment, accounting for approximately 72 per cent of the country’s total oil output

• IOCL operates a 10,909 km network of crude and product pipelines with

a capacity of 1.4 million b/d

• This is around 75 per cent of the nation’s total domestic oil pipeline

network

• IOCL is the largest company, operating 10 out of 20 Indian refineries • Reliance launched India’s first privately-owned refinery in 1999, and has

gained a considerable market share (41 per cent)

Source: BP Statistical Review, June 2012, BMI Forecasts, Aranca Research Note: bcm - billion cubic meters, mbpd - million barrels per day, ONGC - Oil and Natural Gas Corporation of India, IOCL - Indian Oil Corporation Limited


MARKET OVERVIEW AND TRENDS

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Oil supply and demand in India … (1/2)

→

→

Oil consumption is estimated to rise from 3.1 mbpd in 2008 to 4.0 mbpd by 2016, a CAGR of 3.5 per cent Owing to this strong expected growth in demand, India’s dependency on oil imports is expected to increase further

Oil consumption in India and current reserves 5.0

6,000 3.4

4.0 3.1 3.0

3.0

3.2

3.3

3.5

3.7

3.9

4.0

5,800 5,600

5,400 5,200

2.0

5,000 1.0

4,800

0.0

4,600 2008 2009 2010 2011E2012F2013F2014F2015F2016F Oil Consumption (mbpd) Proven Oil Reserves (mn bbl) - RHS

Source: BMI Forecasts -, Aranca Research Notes: mbpd - million barrels per day, mn bbl - million barrels, CAGR - Compound Annual Growth Rate



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Oil supply and demand in India … (2/2)

→

In 2011, imports accounted for approximately 70 per cent of the country’s total oil demand

→

Backed by new oil fields, domestic oil output is anticipated to grow to 1.0 mbpd by 2016

Imports and domestic oil production in India

2.3

2.2

2.2

2.3

0.8

0.8

1.0

1.0

2.4

2.5

2.7

2.9

3.0

1.0

1.0

1.0

1.0

1.0

2008 2009 2010 2011E 2012F 2013F 2014F 2015F 2016F Oil Production (mbpd)

Oil Imports (mbpd)

Source: BMI Forecasts , Aranca Research Notes: mbpd - million barrels per day



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Gas supply and demand in India … (1/2)

1,200 113

1,200 104

1,200 96

1,100 87

1,100 77

1,100 70

1,100 64

1,100

Demand is not likely to simmer down any time soon given strong economic growth and rising urbanisation; during 2009-16, gas demand is likely to witness a CAGR of 11.3 per cent

53

→

Proven reserves and total gas consumption in the country (bcm)

1,090

With India developing gas-fired power stations, consumption is up more than 160 per cent since 1995

41

→

2008 2009 2010 2011E 2012F 2013F 2014F 2015F 2016F Gas Consumption

Proven Gas Reserves

Source: BMI Forecasts , Aranca Research Notes: BMI - Business Monitor International, BCM - Billion Cubic Meters, CAGR - Compound Annual Growth Rate



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Gas supply and demand in India … (2/2)

→

Domestic production accounts for more than three quarters of total gas consumption in the country

→

Imports make up the rest; in 2011 the share of imports was 34.2 per cent

Domestic gas production and imports (bcm)

12.1

24.2

52.4

46.1

29.2

37.6

45.2

53.2

59.7

12.6 10.8 30.5

40.7

48.1

49.0

50.5

51.1

53.0

2008 2009 2010 2011E 2012F 2013F 2014F 2015F 2016F Gas Production

Gas Imports

Source: BMI Forecasts, Aranca Research Note: BCM - billion cubic meters



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Upstream segment: Crude oil and gas production … (1/2)

→

Total crude production stood at 37.7 mmt during FY11

→

ONGC accounted for 65 per cent of the total crude oil production in the country

Crude oil production (mmt)

9.7

4.8 3.1

5.1 3.1

4.7 3.5

5.3 3.6

3.6

24.4

26.1

25.9

25.4

24.9

24.4

FY06

FY07

FY08

FY09

FY10*

FY11*

4.6 3.2

ONGC

OIL

Private/JV

Source: Company reports, www.petroleum.nic.in, Aranca Research Note: MMT - Million Metric Tonne, * - Provisional, JV - Joint Venture



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Upstream segment: Crude oil and gas production … (2/2)

→

Total gas production was 52.2 bcm during FY11

→

The contribution from Private/JV has drastically increased in the last couple of years post development of the Reliance - Krishna Godavari (KG) basin

Annual gas production (bcm)

22.0

29.9

7.4 2.3

7.0 2.3

7.7 2.3

8.1 2.3

2.4

22.6

22.4

22.3

22.5

23.1

19.9

FY06

FY07

FY08

FY09

FY10*

FY11*

ONGC

OIL

2.4

Private/JV

Source: Company reports, www.petroleum.nic.in, Aranca Research Note: BCM - Billion Cubic Meters * - Provisional, JV - Joint Venture



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Upstream segment: Exploration and development activities

→

During FY11, 1,006,000 meters of wells were explored and developed in India

→

The total number of wells drilled in the country during the same period was 420

→

Most upstream drilling and exploration work is undertaken by state-owned oil companies

→

The leader in the upstream segment is ONGC, which accounts for 70 per cent of the total crude oil output in India Exploration activities (FY11*) (‘000 meters)

Development drilling activities (FY11*) (‘000 meters) 80

145

33

479

302

40

240

107 Wells Onshore

Metreage Offshore

Wells

Metreage Onshore

Offshore

Source: www.petroleum.nic.in, Aranca Research


Note: * - Provisional

Note: * - Provisional



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Pipelines: Shares in India’s crude pipeline network →

The total crude pipeline network in India measures 6,518 km with a capacity of 99.6 mmtpa

→

At 4,366 km, IOCL accounts for the major share (67 per cent) of the country’s crude pipeline network by length; IOCL also has to its name the longest pipelines in the country - the Salaya-Mathura-Panipat Pipeline (1870 km), and the Haldia-Barauni/Paradip-Barauni Pipeline (1302 km)

→

However, in terms of capacity, ONGC leads the pack with a share of 51 per cent (50.7 mmtpa) followed by IOCL at 40.6 per cent (40.4 mmtpa) Shares* in crude pipeline network by length (out of 6,518 km )

Shares in crude pipeline network by capacity (out of 99.6 mmtpa) 8.4%

18.3% OIL ONGC

40.6%

OIL

14.5%

ONGC IOCL

67.0%

IOCL 50.9%

Source: Basic Statistics Report, Indian Petroleum & Natural Gas - www.petroleum.nic.in, Aranca Research Note: km - kilometer; MMTPA - Million Metric Tonnes Per Annum, * - refer to the glossary on slides 40, 41 for expansion of the acronyms (of companies)



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Pipelines: Shares in India’s pipeline network for refined products and LPG

→

The total pipeline network for refined products in India measures 10,959 km with a capacity of 71.5 mmtpa; IOC accounts for 59 per cent of the total network by length (6,127 km)

→

In the LPG pipeline network, GAIL has the largest share at 85 per cent (1,550 km out of a total 1,824 km) Shares* in product pipeline network by length (out of 10,959 km )

6%

3%

IOC

3%

15%

HPCL IOC

13%

BPCL 59%

16%

Shares in LPG pipeline network by length (out of 1,824 km )

OIL GAIL

PCCK 85% PMHB

Source: Basic Statistics Report, Indian Petroleum & Natural Gas - www.petroleum.nic.in, Aranca Research Note: km - kilometer, MMTPA - Million Metric Tonnes Per Annum, * - refer to the glossary on slide 40, 41 for expansion of the acronyms (of companies)



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Downstream segment: Refinery crude throughput … (1/2)

→

State-controlled entities dominate the downstream segment as well

→

India has 21 refineries, 18 in the public sector and 3 in the private sector

→

In FY11, public sector refineries accounted for 56 per cent of the total refinery crude throughput

Refinery crude throughput (mmt)

80.7

90.7

38.4

43.6

48.6

96.9

108.2

112.5

112.2

112.1

115.5

FY06

FY07

FY08

FY09

FY10

FY11*

33.2

Public Sector

Private Sector

Source: www.petroleum.nic.in, Aranca Research Note: MMT - million metric tonne * - Provisional



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Downstream segment: Refinery crude throughput … (2/2) →

Total crude throughput rose from 130.1 mmt during FY06 to 206.2 mmt by FY11

→

In FY11, the sector’s total installed capacity stood at 187.4 mmt, up 2.2 per cent from the previous fiscal year

→

In FY11, Reliance emerged as the largest domestic refiner with a capacity of 60 mmt (Jamnagar Refinery) Shares* in India's total refining capacity (Apr 2011)

Total installed capacity (mmt)

IOC BPCL

5% 28% 31%

71

71

113

117

FY10

FY11

HPCL

CPCL NRL

14% 6%

2% 6%

7%

MRPL RPL EOL

Public Sector

Private Sector

Source: www.petroleum.nic.in, Aranca Research, Note: MMT - Million Metric Tonnes, * - refer to the glossary on slides 40, 41 for expansion of the acronyms (of companies) mentioned



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Downstream segment: Petroleum products →

Petroleum products produced during FY11 amounted to 192.5 mmt (including 2.2 mmt of LPG from natural gas)

→

Petroleum products derived from crude oil include light distillates such as LPG, naphtha, natural gas liquids (NGL); middle distillates such as kerosene; and heavy ends such as furnace and lube oils, bitumen, petroleum coke, paraffin wax

→

Production of petroleum products is expected to reach 904.8 mmt by the end of the Eleventh Plan Period Petroleum products from crude oil (mmt)

34.8 22.9

25.9

28.2

Petroleum products from natural gas (mmt)

2.2

30.0 93.8

2.2

2.1

80.3

71.2

32.4

38.1

40.1

40.2

51.2

55.2

FY06

FY07

FY08

FY09

FY10

FY11*

2.1

FY06 Light Distillates

2.2

99.8

76.6

64.4

2.2

35.4

Middle Distillates

Heavy Ends

Source: www.petroleum.nic.in, Aranca Research Note: MMT - Million Metric Tonne, * - Provisional


FY07

FY08

FY09 LPG

FY10

FY11*

Source: www.petroleum.nic.in, Aranca Research Note: MMT - Million Metric Tonne, * - Provisional MARKET OVERVIEW AND TRENDS

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Downstream segment: Distribution and marketing

Downstream distribution statistics (‘000 tonnes) 150,000

→

Total sales of petroleum products by companies was 141.8 mmt in FY11, which was 2.6 per cent higher than the previous fiscal year

120,000 90,000 60,000

→

→

→

Total number of retail outlets of public sector oil marketing companies (OMCs) increased to 38,964 in April 2011 from 36,462 in April 2010 IOC owns the maximum number of retail outlets in the country (47.1 per cent of total), followed by BPCL (20.1 per cent) and HPCL (18.0 per cent); remaining outlets are owned by private firms The number of LPG distributors in India were 10,541 as on April 1 2011 Note: MMT - Million Metric Tonne, MMTPA - Million Metric Tonnes Per Annum

30,000 0 FY06

FY07

Product Pipeline

FY08

FY09

LPG Pipeline

FY10

FY11*

Crude Pipeline

Pipeline

Capacity (mmtpa) As of April 1 2011

Length (km) As of April 1 2011

Product Pipeline

71.5

10,959

LPG Pipeline

3.9

1,824

Crude Pipeline

99.6

6,518

Total

175.0

19,300

Source: Basic Statistics Report, Indian Petroleum & Natural Gas www.petroleum.nic.in, Aranca Research



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India’s energy consumption mix … (1/2)

→

In 2010, coal accounted for more than 50 per cent of total primary energy demand

→

Energy demand in the Asia Pacific region is expected to reach 5,496 million TOE over the next five years (20.6 per cent growth compared to 2010)

→

Consumption pattern in 2010

Oil

India’s share is forecasted to increase from 11.3 per cent to 11.8 per cent during the same period

10% 51%

Note: TOE - Tonne of Oil Equivalent Note: # - Other sources includes nuclear power as well

Coal

31%

6%

Gas Hydro Power Others#

2%

Source: BMI Report, Aranca Research



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India’s energy consumption mix … (2/2)

→

Over the next few years, the dependence on gas, hydro power and nuclear power is expected to increase relative to oil and coal

→

Nuclear power is expected to contribute approximately 2 per cent to total energy consumption by 2014

Consumption pattern expected in 2014

29% Coal 15%

Oil Gas

9% 43%

Hydro Power Others#

4%

Source: BMI Report, Aranca Research Note: # - Other sources includes nuclear power as well



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Key domestic oil and gas companies

Ownership (%)

Turnover (USD billion)

89% state-owned

81.4 (FY12)

Public Listed

71.7 (FY12)

66% state-owned

42.4 (FY12)

51% state-owned

37.0 (FY12)

ONGC

69.1% state-owned

14.1 (FY12)

GAIL India Limited

57% state-owned

8.8 (FY12)

Oil India Limited

98.1% state-owned

2.0 (FY12)

Company Indian Oil Corporation Limited

Reliance Industries

Bharat Petroleum Corporation Limited Hindustan Petroleum Corporation Limited

Source: Bloomberg, Aranca Research Note: FY - Indian financial year (April - March)



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Key international oil and gas companies operating in India

Company

Ownership (%)

Global Turnover (USD billion)

Cairn Energy India Pvt Ltd

Private Sector

3.1 (FY12)

Shell

Private Sector

484.5 (2011)

BG Group

Private Sector

22.7 (2011)

BP

Private Sector

371.4 (FY12)

Source: Company Reports, Bloomberg, Aranca Research Note: Note: FY - Indian financial year (April - March); it is also the same for British financial year



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Notable trends in the oil and gas sector Coal bed methane (CBM) •

Government approved the CBM policy in 1997 to boost the development of clean and renewable energy resources

•

CBM is an eco-friendly natural gas (methane), which is absorbed in coal and lignite seams

•

CBM policy was designed to be liberal and investor friendly; the first commercial production of CBM was initiated in July 2007 at about 72,000 cubic metres per day

Underground coal gasification (UCG) •

The technology was first widely used in the US in the 1800s, and in India (Kolkata and Mumbai) in the early 1900s

•

UCG is currently the only feasible technology available to harness energy from deep unmineable coal seams economically in an ecofriendly manner

•

Reduces capital outlay, operating costs and output gas expenses by 25-50 per cent, vis-à-vis surface gasification

Gas hydrates and bio-fuels •

The government initiated the National Gas Hydrate Programme (NGHP), a consortium of national E&P companies and research institutions, to map gas hydrates for use as an alternate source of energy

•

Bio-fuels (bio-ethanol and bio-diesel) are alternate sources of energy from domestic renewable resources; these have lower emissions compared to petroleum or diesel



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Geographical distribution of oil refineries State

Installed capacity

Crude throughput

as of Apr 2011 (mt)

for 2010-11 in mt

Gujarat

84.2

104.3

Maharashtra

18.5

19.8

Haryana

15.0

13.7

Karnataka

11.8

12.7

Tamil Nadu

11.5

10.8

Kerala

9.5

8.7

Andhra Pradesh

8.4

8.3

Uttar Pradesh

8.0

8.9

West Bengal

7.5

6.9

Assam

7.0

6.0

Bihar

6.0

6.2

Total

187.4

206.2

Source: Ministry of Petroleum & Natural Gas, Aranca Research Note: MT - Million Tonne


GROWTH DRIVERS

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Persistent domestic demand to drive the market

Growing demand

Increasing investments

Policy support Strong government support

India is fifth largest energy consumer

Supportive FDI policies Inviting

Resulting in

Rise in population and economic growth to fuel demand

Promoting of investments in the sector

Increasing industrialisation and usage of gas

Introducing policies such as CBM and NELP


FDI in FY12 was USD185.9 million

Cumulative FDIs in oil & gas totaled USD3.3 billion

Huge investments planned under Eleventh Plan

GROWTH DRIVERS

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Growth drivers … (1/2) Robust domestic market; expected to expand

• India is the fifth-largest energy consumer in the world • Oil consumption is expected to rise 42.5 per cent during 2010-20 • The country’s gas demand is approximately 11.2 per cent of the total Asia Pacific

regional demand • Several industries are increasing the usage of natural gas in operations; this has

Increasing demand for natural gas

boosted natural gas demand in India • Some of the main industries that use natural gas - pulp and paper, metals,

chemicals, glass, plastic and food processing • The nation has large coal, crude oil and natural gas reserves

Abundant raw material

• Oil reserves amounted to 5,682 million barrels in 2011 • Natural gas reserves stood at 1.1 tcm in 2011 and is expected to grow to 1.2 tcm by

2014 • 100 per cent FDI allowed in E&P projects/companies; 49 per cent allowed in

Favourable policies

refining • Policies to promote investments in the industry such as NELP and CBM Source: BMI, www.petroleum.nic.in, Aranca Research


GROWTH DRIVERS

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Growth drivers … (2/2)

• Investments worth USD563 billion is expected across the oil and gas value chain

Huge investments

under the Eleventh Plan (2007-12) • Since 2000, FDI worth USD5.37 billion was invested in the petroleum and natural

gas sectors in India. • The nation offers abundant skilled labour at much competitive wages compared to

Skilled labour

other countries • The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is

Asia’s first and only energy university

Natural gas discoveries

• Several domestic companies (such as ONGC, Reliance and Gujarat State Petroleum)

have reportedly found natural gas in deep waters • This offers significant expansion opportunity for the next decade

Source: BMI, www.petroleum.nic.in, Aranca Research


GROWTH DRIVERS

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Regulatory overview of the industry … (1/2)

→

FDI Policies - The E&P segment’s FDI limit is 100 per cent, and the refining segment’s limit is 49 per cent

→

Oil Field (Regulation and Development) Act, 1948 - An act to regulate oilfields and develop mineral oil resources

→

Petroleum and Natural Gas Rule, 1959 - Regulates the grant of petroleum and natural gas exploration licenses and mining leases, which belong to the government

→

Petroleum and Minerals Pipelines Act, 1962 - Acquisition of user’s rights by the government of India on land demarcated for laying pipelines to transport petroleum and other minerals from one area to another

→

Oil Industry (Development) Act, 1974 - An act establishing a board to develop the oil industry and levy excise duty on crude and natural gas

→

CBM Policy, 1997 - To encourage exploration and production of CBM gas as a new eco-friendly source of energy

→

NELP, 1999 - To provide a contract framework for E&P of hydrocarbons; licenses for exploration are awarded through a competitive bidding system; nine rounds of bidding completed till 2011



GROWTH DRIVERS

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Regulatory overview of the industry … (2/2)

→

Freight Subsidy (for far-flung areas) Scheme, 2002 - To compensate public sector OMCs on the freight incurred to distribute subsidised products in far-flung areas

→

National Biofuel Policy, 2002 - To promote bio-fuel usage, the GoI has provided a 16 per cent concession on the excise duty on bio-ethanol and exempted bio-diesel from excise duty

→

Auto Fuel Policy, 2003 - To provide a roadmap to comply with various vehicular emission norms and corresponding fuel quality upgrading requirements over a period of time

→

Petroleum and Natural Gas Regulatory Board (PNGRB) Act, 2006 - To regulate refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas



GROWTH DRIVERS

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FDI investments in petroleum and gas in India

→

Cumulative FDI inflows over Apr 2000 - Oct 2012 in India’s petroleum and natural gas sector stood at USD5.37 billion (2.9 per cent of total FDI).

→

Across all sectors, cumulative FDI inflows over Apr 2000 - Oct 2012 was USD185.77 billion with the services sector accounting for the largest share (19 per cent) followed by construction development (12 per cent) and telecommunication (7 per cent) FDI inflows into India (USD billion)

FDI inflows into petroleum and natural gas (USD million)

35.1

2,038 24.6

27.3

25.8 21.4 14.8

12.5 574 272

FY10

5.5

186 FY11

FY12*

FY13#

FY6

FY7

FY8

FY9

FY10* FY11* FY12* FY13#

Source: www.dipp.nic.in, Aranca Research

Source: www.dipp.nic.in, Aranca Research

Note: * - Provisional, # - April - Oct

Note: * - Provisional, # - April - Oct


GROWTH DRIVERS

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M&A activities in the Indian oil and gas sector Date Announced

Acquirer Name

Target Name

Value of Deal (USD million)

Nov 2012

ONGC Videsh

ConocoPhillips (kashagan field)

5000.0

Nov 2012

Inpex Corp

Oil and Natural Gas Corp’s exploration block KG-DWN-2004/6

Not disclosed

Sep 2012

ONGC Videsh

Hess Corp. (Azrei oil field)

1000.0

Apr 2012

Trafigura Pte Ltd

Nagarjuna Oil Co Ltd

130.0

Feb 2011

BP PLC

Reliance Industries Ltd

9,000.0

Aug 2010

BPRL

EP413

13.4

Aug 2010

Sesa Goa Ltd

Cairn India Ltd

1,180.8

Aug 2010

Vedanta Resources PLC

Cairn India Ltd

6,568.5

Aug 2010


Marcellus Shale Natural Gas

391.6

Jun 2010


Infotel Broadband Svcs Ltd

1,026.7

Apr 2010

Sim Siang Choon Hardware

Interlink Petroleum Ltd

17.8

Apr 2010


Atlas Energy Inc-Marcellus

339.0

Mar 2010

Investor Group

Gulfsands Petroleum PLC

573.3

Mar 2010

Natural Power Venture Pvt Ltd

Great Offshore Ltd

11.8

Feb 2010

Investor Group

Republic of Venezuela-Carabobo

4,848.0

Source: Thomson Banker, Aranca Research


GROWTH DRIVERS

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ONGC: Continuing on its strong growth path ONGC revenue growth (USD billion) 14.5 14.1 13.6 12.8

• ONGC • ONGC recorded reported net highest-ever • Domestic profit of net profit of crude USD3.9 USD4.6 production billion in 2011 billion in up 2.1 per • Highest 2012 cent reserve • Highest-ever accretion in dividend the last two payout of • ONGC decades USD1.6 billion registered 83.5 million highesttoe ever oil production

Source: ONGC Annual Report, BMI 4Q 2012, Aranca Research Note: TOE - Tonne of Oil Equivalent


12.9

12.3

FY07

FY08

FY09

FY10

FY11

FY12

ONGC’s position in the Indian market •

ONGC is the largest upstream oil company

•

ONGC accounts for 70 per cent of total crude oil output in India and 74 per cent of total gas production

SUCCESS STORIES: ONGC, RELIANCE INDUSTRIES

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Reliance Industries: Well positioned for growth →

Reliance Industries is a leading company in the petrochemical, refining and oil & gas industry

→

The company was ranked 99th in the Fortune Global 500 list 2012

→

It contributes 14 per cent to India's exports (Mar 2011) and 4.6 per cent of total market capitalisation in the country

• Volume growth in the refining, and oil and gas businesses

FY11

FY12

Turnover

USD48.5 billion

USD65.9 billion

EBITDA

USD7.3 billion

USD7.3 billion

Net Profit

USD4.2 billion

USD4.1 billion

• Turnover increased by 35.9 per cent in FY12 • Significant improvement in net profit due to improved refining and petrochemical margins

Reliance Industries has entered into JVs with various companies across segments to align growth opportunities; it signed JVs with Atlas, Pioneer, Carrizo SIBUR, and D.E. Shaw as well as entered into a strategic alliance with BP recently For updated information, please visit www.ibef.org

SUCCESS STORIES: ONGC, RELIANCE INDUSTRIES

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Opportunities

Upstream segment

• Locating new fields for

exploration: 78 per cent of the country’s sedimentary area is yet to be explored • Development of

unconventional resources: CBM fields in the deep sea • Opportunities for

secondary/tertiary oil producing techniques • Increased demand for

skilled labour and oilfield services and equipment

Midstream segment

• Expansion in the

transmission network of gas pipelines • LNG imports have

increased significantly; this provides an opportunity to boost production capacity • In light of mounting LNG

production, huge opportunity lies for LNG terminal operation, engineering, procurement and construction services


Downstream segment

• Development in city gas

distribution (CGD) networks, which are similar to Delhi and Mumbai’s CGDs • To construct new refineries

considering advantages such as low operation costs, lesser freight charges and favourable policies • Expansion of the country’s

petroleum product distribution network

OPPORTUNITIES

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Industry Associations Name

Address

Contact person

Telephone

E-mail

91-11-23413298 91-11-23414692

[email protected]

91-11-26198799 Ext.301

[email protected]

Dr Ajay Mathur, Director General

91-11-26178316, 91-11-26179699

[email protected], [email protected]

Mr J B Verma, ED

91-11-23316798

[email protected]

Petroleum Planning and Analysis Cell (PPAC)

Ministry of Petroleum & Natural Gas, 2nd floor, Core - 8, SCOPE Complex, 7 Institutional Area, Lodhi Road, New Delhi - 110003

Dr Basudev Mohanty, Director

91-11-24362501, 91-11-24361380

-

Directorate General of Hydrocarbons

Ministry of Petroleum & Natural Gas, C-139, Sector 63, Noida 201301

Mr S K Srivastava, Director General

0120-4029401

[email protected]

Oil Industry Development Board (OIDB)

301, World Trade Centre, Babar Road, New Delhi - 110001

Mr T S Balasubramanian, Financial Adviser and Chief Accounts Officer

Petroleum Conservation Research Association (PCRA)

Sanrakshan Bhavan, 10 Bhikaji Cama Place, New Delhi - 110066

Mr Arun Kumar, ED

Ministry of Power, 4th floor, Bureau of Energy Efficiency SEWA Bhawan, RK Puram, New (BEE) Delhi - 110066 Ministry of Petroleum & Natural Oil Industry Safety Gas, 7th floor, “New Delhi Directorate House”, 27 Barakhamba Road, New Delhi - 110001


USEFUL INFORMATION

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Glossary … (1/2) →

B/D (or bpd): Barrels Per Day

→

MMTPA (or mmtpa): Million Metric Tonnes Per Annum

→

MBPD (or mbpd): Million Barrels Per Day

→

EBITDA: Earning Before Interest Taxes Depreciation Amortization

→

BCM (or bcm): Billion Cubic Metres →

NRL: Numaligarh Refinery Limited

→

CBM: Coal Bed Methane →

CPCL: Chennai Petroleum Corporation Limited

→

HPCL: Hindustan Petroleum Corporation Limited

→

BPCL: Bharat Petroleum Corporation Limited

→

IOC: Indian Oil Corporation Ltd

→

EOL: Essar Oil Ltd

→

RPL: Reliance Petroleum Limited

→

MRPL: Mangalore Refinery and Petrochemicals Limited

→

PCCK: Petronet Cochin-Coimbatore-Karur

→

PMHB: Petronet Mangalore-Hassan-Bangalore

→ →

CGD: City Gas Distribution E&P: Exploration and Production

→

FDI: Foreign Direct Investment

→

FY: Indian financial year (April to March) →

→ →

So FY12 implies April 2011 to March 2012

GoI: Government of India INR: Indian Rupee

→

LNG: Liquefied Natural Gas

→

MMT (or mmt): Million Metric Tonne


USEFUL INFORMATION

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Glossary … (2/2) →

NELP: New Exploration Licensing Policy

→

Conversion rate used: USD1= INR48

→

TOE (or toe): Tonnes of Oil Equivalent

→

Wherever applicable, numbers have been rounded off to the nearest whole number

→

USD: US Dollar

→

ONGC: Oil and Natural Gas Corporation of India

→

IOCL: Indian Oil Corporation Limited

→

mn bbl : Million Barrels

→

CAGR: Compound Annual Growth Rate

→

JV: Joint Venture

→

UCG: Underground Coal Gasification

→

NGL: Natural Gas Liquids

→

OMCs: Oil Marketing Companies

→

NHGP: National Gas Hydrate Programme


USEFUL INFORMATION

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Disclaimer

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this


presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

DISCLAIMER

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